Isis Shares Rise 5% After News of $10M Milestone Payment

Shares for Isis Pharmaceuticals Inc. rose 5 percent on news that the company has received a $10 million milestone payment from Weston, Mass.-based Biogen Idec Inc.

Isis (Nasdaq: ISIS) closed day trading at $34.17, with a market capitalization of $3.9 billion.

The company received the payment for its development of a treatment for myotonic dystrophy type 1 — a rare but severe disease that causes muscular atrophy. It affects about 150,000 in the U.S., Europe and Japan, the company said.

Isis partnered with Biogen Idec in June 2012, receiving an upfront payment of $12 million, with the option to receive up to $59 million in clinical development milestone payments. Under the deal, it could receive up to $200 million from licensing and regulatory milestones, as well as double-digit royalties from the sale of the drug.